5. Types of bonds Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date. The entity that promises to make the interest and maturity payments for a bond issue is called the guarantor issuer information given in the following statement, answer the questions that follow: investor In July 2009, Walmart sold 100 billion yen of five-year samurai bonds. Lead managers in the deal were Mizuho Securities, BNP Paribas, and Mitsubishi UF) Securities. Who is the issuer of the bonds? Walmart Mitsubishi UF) Securities BNP Paribas What type of bonds are these? Government bonds Municipal bonds Corporate bonds Which of the following statements is true about bonds? The interest payments from municipal bonds are not exempt from state and federal taxes. The interest payments from municipal bonds are exempt from state and federal taxes. Which of the following types of bonds has the least default risk? Corporate bonds Treasury bonds Municipal bonds